§ Mr. Tebbitasked the Chancellor of the Exchequer if he will list the cumulative increases and the average annual rates of increase in the real net income 367W of the average industrial worker in the following periods (a) July 1945 to October 1951, (b) October 1951 to October 1964, (c) October 1964 to June 1970, (d) June 1970 to February 1974 and (e) February 1974 to July 1978.
Increase in real net income between July 1945 and the last month of the period: Period (a) At June 1978 prices (b) As a percentage of the level in July 1945 Average annual rate of increase in real net income during the period 7 Per cent. Per cent. July 1945 to October 1951 … 3.50 9.2 1.4 October 1951 to October 1964 … 20.20 52.7 2.6 October 1964 to June 1970 … 22.90 59.7 0.8 June 1970 to March 1974 … 27.70 72.2 2.0 March 1974 to May 1978 … 28.80 75.2 0.4 Real net income is earnings plus family allowance or child benefits less income tax and national insurance contributions.
Average manual earnings in July 1945 October 1951 and October 1964 are the Department of Employment's estimates of the average weekly earnings of full-time adult male manual workers. For later months, the previous April's new earnings survey estimate of the average earnings of similar workers has been updated to the appropriate month by the monthly index of average earnings. An estimate of average manual earnings in February 1974 is not available owing to the three-day week, and the figure for July 1978 is also not yet available, so figures for March 1974 and May 1978 have been used in their place.
The price index used for October 1964 and later months is the general index of retail prices, all items. For earlier months the index of prices of consumer goods and services given in table 2 at the CSO publication "The Internal Purchasing Power of the Pound" has been used, taking the figure for the appropriate calendar year.
It has been assumed that the employee was not contracted out of the graduated pension scheme in months from October 1964 onwards. The tax rates and allowances used for May 1978 are those contained in the Finance Bill as amended in Committee.